Farming Land

[LAKRA]

Has anyone got any information about the average price of farming land within a range of 30 kms of Korat? Sound advice on this area would be much appreciated!

[Maizefarmer]

Lakra - no such thing as an average price for farmland - so many factors involved here:

1) is there a public right of way along one side or near to the land?

2) does it have a water supply or access to water (e.g. borehole, river along one side ..)?

3) does it flood/swamp in the rainy season?

4) does it have or is planning permission possible?

5) what type of titleship applies to it (e.g. is it Chanote land or something else - the most important of all factors)?

6) is it level or on a slant?

7) would that be 30k's North or South of Korat (land South of Nakorn Ratchasima is generally more expensive per rai than land North of the the provincial capital)?

8) whats the titleship status of adjoining land?

Do you have your eye on some particular land - any more info about it?

[rice555]

Hello LAKRA, I'm 100m off the Hwy to the Korat Airport, 7Km from the 'center of downtown' Korat, the land around the house we are renting, is 4-500,000 per Rai. 4-5 family members each with 2Rai, I rent the 2

Rai behind the house from one brother for Bt.3,000 per year.

Still going towards the airport on the Hwy, at about 15-20Km out, go north about 3Km and land is about Bt.30,000 a Rai.

We are building a house 12Km W. of Pi Mai in the wife's village. We got 3 Rai for 20,000 + Bt 1,000 a month from her mother, 100m river/lake front 60m to paved road.(flooded last year, only the house was out of the water. Has never happened past 30 years) We bought 3.5 Rai next to are land from some one in KK for Bt. 220,000.

This family('s) from KK have another 29 Rai(one piece) @ Bt. 60,000 each, it's in rice.

We a few years back bought and sold 63 Talang Wa's<sp> Bt.120K, sold Bt.175K, that was in Sav-On area, as you are coming in to Korat from BKK, the big night market on the S. side of the road before Som Yet junction.

rice555

[LAKRA]

Lakra - no such thing as an average price for farmland - so many factors involved here:

1) is there a public right of way along one side or near to the land?

2) does it have a water supply or access to water (e.g. borehole, river along one side ..)?

3) does it flood/swamp in the rainy season?

4) does it have or is planning permission possible?

5) what type of titleship applies to it (e.g. is it Chanote land or something else - the most important of all factors)?

6) is it level or on a slant?

7) would that be 30k's North or South of Korat (land South of Nakorn Ratchasima is generally more expensive per rai than land North of the the provincial capital)?

8) whats the titleship status of adjoining land?

Do you have your eye on some particular land - any more info about it?

The object of my enquiry was to gauge the parameters within which my wife the buyer could offer on an existing farm. I just want to make sure she isn't ripped off. So maizefarmer, couuld you give percentage variances on each of your points and in particular the differrential betwen North & South Ratchisima? Many thanks

LAKRA

[LAKRA]

Hello LAKRA, I'm 100m off the Hwy to the Korat Airport, 7Km from the 'center of downtown' Korat, the land around the house we are renting, is 4-500,000 per Rai. 4-5 family members each with 2Rai, I rent the 2

Rai behind the house from one brother for Bt.3,000 per year.

Still going towards the airport on the Hwy, at about 15-20Km out, go north about 3Km and land is about Bt.30,000 a Rai.

We are building a house 12Km W. of Pi Mai in the wife's village. We got 3 Rai for 20,000 + Bt 1,000 a month from her mother, 100m river/lake front 60m to paved road.(flooded last year, only the house was out of the water. Has never happened past 30 years) We bought 3.5 Rai next to are land from some one in KK for Bt. 220,000.

This family('s) from KK have another 29 Rai(one piece) @ Bt. 60,000 each, it's in rice.

We a few years back bought and sold 63 Talang Wa's<sp> Bt.120K, sold Bt.175K, that was in Sav-On area, as you are coming in to Korat from BKK, the big night market on the S. side of the road before Som Yet junction.

rice555

Many thanks Rice555 for this very useful info. My wife who is from Uthai is looking at Uthai and Korat and I just wondered how does one go about finding the sellers! At the moment she has an eye on an exisiting farm (owned by relatives) but given your figures it looks as if they are trying it on! massively!

LAKRA

[Pierrot]

IMHO it's very dangerous to consider only the value of a land, especially when the investment represents a large part of the savings of the investor. One should better take into account the "total cost of ownership" which includes "not only the cost of purchase but all aspects in the further use and maintenance of the equipment, device, or system considered." (http://en.wikipedia.org/wiki/Total_cost_of_ownership ) especially if ones expect to derive incomes from his investment. I'm sure that TV experts can give us a lot of information regarding these costs, that are far from negligeable !

IMHO again, people always underestimates these costs, which is part of the learning process when one has other sources of income or is young enough to recover from a bad investment. For olders people, or people no willing to take risks, I'm sure that Thailand offerts investments with better and safer return than farm lands.

[Maizefarmer]

Lakra - no such thing as an average price for farmland - so many factors involved here:

1) is there a public right of way along one side or near to the land?

2) does it have a water supply or access to water (e.g. borehole, river along one side ..)?

3) does it flood/swamp in the rainy season?

4) does it have or is planning permission possible?

5) what type of titleship applies to it (e.g. is it Chanote land or something else - the most important of all factors)?

6) is it level or on a slant?

7) would that be 30k's North or South of Korat (land South of Nakorn Ratchasima is generally more expensive per rai than land North of the the provincial capital)?

8) whats the titleship status of adjoining land?

Do you have your eye on some particular land - any more info about it?

The object of my enquiry was to gauge the parameters within which my wife the buyer could offer on an existing farm. I just want to make sure she isn't ripped off. So maizefarmer, couuld you give percentage variances on each of your points and in particular the differrential betwen North & South Ratchisima? Many thanks

LAKRA

Percentage variations? - hel_l, that's an difficult one. I don;t know if that would be the right way to "measure" it - it's more about the relivance of each of those factors, so I'll try and illustrate that. Any "percentage" figure is theoretical.

1) Public right of way = free access, meaning the land is not surrounded by 3rd party land, owners of which you would ahve to negotiate with to get/have unrestricted access to your land whenever you wanted. Its more common than you may think. This aspect alone can change the value of a piece of land by several hundred percent.

This is more common with land that has being subdivided into smaller plots in an effort to increase the value.

2) Water avalibility - impact on land value? If its a borehole in an area with a record of a failing water table and there is no public supply, the chances are that land is going to fall in value over time, realtive to surrounding land, and other land in the area that has access to alternative water supplies (e.g. public supply) - unless you are willing to pay for the installation of a public supply.

3) Planning permission - a piece of land in an urban area without planning permission is a pig in a poke. Land without planning permission is always cheaper than land with planning permission. By how much is roughly proportional to its distance from built up/residential/urban areas - it can double the value of a piece of land quite easily.

5) Titleship: Chanote land is almost always more valuable than any other titleship - it is the only titleship that conferrs on their "owner" irrevocable ownership rights - again, depending on where it is it can also double the value of land - the closer to urban/built up areas the higher the value differance.

6) Level or slanted - wouldn't have a clue percentage wise - I guess depends on intend use.

7) Land south of Korat has traditionaly commanded higher prices than land North of Korat on a "like for like" basis - by how much? I'd be guessing but I'd think something like 10% - 20% at most.

8) Titleship of adjoining land - any land boardering your land that is not Chanote, Nor Sor 3 or Nor Sor 3 Gor is land that will not have being surveyed and pegged out - and if it is, you can be sure they will be boarders open to possible later dispute. By how much will affect the value of your land? - I don't think you can peg a percentage to that - it really is all about how long the borders have being in place and accepted by the various surrounding land owners.

All the above are to some degree comparative indicators - they are inter-related amongst themselves and to surrounding land - and that is probably your most reliable indicator: the surrounding land - especially any surrounding land that may have changed hands within the last couple years or so: what was it sold for, what was its size, what was its titleship ....... ect ect ........ Find land around the land you are looking at that has changed hands, and use the price it sold for as a starting point. Ultimately any piece of land is only worth what someone is willing to pay for it.

Pierrot makes a very interesting observation - take note guys: the "cost of land" is seldom just the price for which you purchased it - that is often just the first expense in a number of expenses over time that determine what it ultimately costs. What you paid for the land can often be as little as half what it ultimately costs you, if not even less.

[LAKRA]

Lakra - no such thing as an average price for farmland - so many factors involved here:

1) is there a public right of way along one side or near to the land?

2) does it have a water supply or access to water (e.g. borehole, river along one side ..)?

3) does it flood/swamp in the rainy season?

4) does it have or is planning permission possible?

5) what type of titleship applies to it (e.g. is it Chanote land or something else - the most important of all factors)?

6) is it level or on a slant?

7) would that be 30k's North or South of Korat (land South of Nakorn Ratchasima is generally more expensive per rai than land North of the the provincial capital)?

8) whats the titleship status of adjoining land?

Do you have your eye on some particular land - any more info about it?

The object of my enquiry was to gauge the parameters within which my wife the buyer could offer on an existing farm. I just want to make sure she isn't ripped off. So maizefarmer, couuld you give percentage variances on each of your points and in particular the differrential betwen North & South Ratchisima? Many thanks

LAKRA

Percentage variations? - hel_l, that's an difficult one. I don;t know if that would be the right way to "measure" it - it's more about the relivance of each of those factors, so I'll try and illustrate that. Any "percentage" figure is theoretical.

1) Public right of way = free access, meaning the land is not surrounded by 3rd party land, owners of which you would ahve to negotiate with to get/have unrestricted access to your land whenever you wanted. Its more common than you may think. This aspect alone can change the value of a piece of land by several hundred percent.

This is more common with land that has being subdivided into smaller plots in an effort to increase the value.

2) Water avalibility - impact on land value? If its a borehole in an area with a record of a failing water table and there is no public supply, the chances are that land is going to fall in value over time, realtive to surrounding land, and other land in the area that has access to alternative water supplies (e.g. public supply) - unless you are willing to pay for the installation of a public supply.

3) Planning permission - a piece of land in an urban area without planning permission is a pig in a poke. Land without planning permission is always cheaper than land with planning permission. By how much is roughly proportional to its distance from built up/residential/urban areas - it can double the value of a piece of land quite easily.

5) Titleship: Chanote land is almost always more valuable than any other titleship - it is the only titleship that conferrs on their "owner" irrevocable ownership rights - again, depending on where it is it can also double the value of land - the closer to urban/built up areas the higher the value differance.

6) Level or slanted - wouldn't have a clue percentage wise - I guess depends on intend use.

7) Land south of Korat has traditionaly commanded higher prices than land North of Korat on a "like for like" basis - by how much? I'd be guessing but I'd think something like 10% - 20% at most.

8) Titleship of adjoining land - any land boardering your land that is not Chanote, Nor Sor 3 or Nor Sor 3 Gor is land that will not have being surveyed and pegged out - and if it is, you can be sure they will be boarders open to possible later dispute. By how much will affect the value of your land? - I don't think you can peg a percentage to that - it really is all about how long the borders have being in place and accepted by the various surrounding land owners.

All the above are to some degree comparative indicators - they are inter-related amongst themselves and to surrounding land - and that is probably your most reliable indicator: the surrounding land - especially any surrounding land that may have changed hands within the last couple years or so: what was it sold for, what was its size, what was its titleship ....... ect ect ........ Find land around the land you are looking at that has changed hands, and use the price it sold for as a starting point. Ultimately any piece of land is only worth what someone is willing to pay for it.

Pierrot makes a very interesting observation - take note guys: the "cost of land" is seldom just the price for which you purchased it - that is often just the first expense in a number of expenses over time that determine what it ultimately costs. What you paid for the land can often be as little as half what it ultimately costs you, if not even less.

Thanks Maizefarmer.........The depth of knowledge which emanates from you is truly awesome and will be well remembered when we do buy land.

Lakra